Summary of management concall attended by our Analysts ... · Company Name Page Company Name Page Aegis Logistics Limited …………………………….…..3 4 Deep Industries

Summary of management concall attended by our Analysts post Q3FY18 earnings

Company Name Page Company Name Page

Aegis Logistics Limited …………………………….…..3 4 Deep Industries Ltd……………………………………….. 18

Allcargo Logistics Ltd …………………………………………………….4 Dewan Housing Finance Co. Ltd.…………………………... 18

Apollo Tyres Ltd ………………………………………………..5 Dhanuka Agritech Ltd………………………..……………….. 19

APL Apollo Tubes Limited……………….. 5 Dilip Buildcon Ltd……………………………….………………… 19

Ashoka Buildcon Ltd ……………………………………… 6 Dishman Pharma Ltd…………………………..………………… 20

Ashok Leyland Ltd ……………………………. 6 Drreddy Ltd…………………………………..…………………… 20

Agro Tech Foods Ltd…………………………. 7 Eicher Motors Ltd………………………………….……………. 21

Aurobindo Pharma Ltd………………………………………………………………..7 EID Parry ( India) Ltd………………………………..………… 21

Axis Bank Ltd………………………………………………………..8 Equitas Holding Ltd……………………………………..…….. 22

Bajaj Auto Ltd ……………………………………………... 8 Escorts Ltd…………………………………………...……... 22

Bajaj Corp Ltd……………………………………………….. 9 Federal Bank Ltd……………………………………………..…. 23

Bajaj Finance Ltd……………………………………………………..9 GAIL (India) Ltd…………………………………………………………...23

Biocon Ltd………………………………………………………….10 Gayatri Projects Limited……………………….. 24

Britania Industries Ltd………………………………………...10 Glenmark Pharmaceuticals Ltd……………………... 24

Cadila Healtcare Ltd……………………………………………….11 Godrej Consumer Products Ltd……………………..... 25

Canara Bank………………………………………….. 11 Gujarat Pipavav Port Ltd…………………………… 25

Castrol India Limited…………………………….. 12 Granules India Ltd………………………………..….. 26

CEAT Ltd……………………………………………………………………....12 Hindalco ……………………………………………………….… 26

Century Plyboards (India) Ltd…………………………………..13 HDFC Bank Ltd……………………………………………...…….. 27

CholaFin………………………………………………….. 13 Hero MotoCorp Ltd…………………………………………….…27

Cipla Ltd………………………………………………………….. 14 Hindzinc …………………………………………………….... 28

City Union Bank Ltd ……………………………...…………….14 Hindustan Media Ventures Ltd…………………………… 28

Cyient Ltd…………………………..…………………………. 15 Hindustan Unilever Ltd……………………………………..... 29

Dabur India Ltd…………………………….……………… 16 IIFL Holdings Limited………………………….. 29

DBCORP Ltd…………………………………..………………… 16 ICICI BANK LTD……………………………………………………………30

DCB Bank Ltd……………………………………..…………….17 Indiabulls Housing Finance Ltd …………………………………..30

DCM Shriram Ltd…………………………………..…………. 17 Indian Bank ……………………………………………………..………….31

Indusind Bank Ltd………………………………………………………………...31

Infosys Ltd…………………………………………………………………...………….4 KEC Ltd………………………………………………………………………….……. 12

Inox Ltd …………………………………………………………………………………5 KNR Constructions Ltd ……………………………………………………………...13

Insecticides (India) Ltd………………………………………….……………...6 KPIT Technologies Ltd………………………………………………… 13

IRB Infrastructure Developers …………………………………………6 Lakshmi Vilas Bank Ltd……………………………………………...…… 14

Jammu & Kashmir Bank Ltd ……………………………………………………………7 Larsen & Toubro Infotech Ltd…………………………………..….. 14

Jindal Saw Ltd……………………………………………………………………….8 LIC Housing Finance Ltd………………………………………………………..15

Jkumar Infraprojects Ltd……………………………………………………….8 Lupin Ltd ………………………………………………………………………………..16

JSW Steel Ltd…………………………………………………………… 9 Mahanagar Gas Ltd …………………………………………………………………...16

Jubilant Foodwork Ltd………………………………………………………....10 Mahindra & Mahindra Ltd …………………………………………………………..17

Kalpataru Power Transmission……………………………. 10 Mahindra & Mahindra Financial Services Ltd…………………….... 17

Karnataka Bank Ltd……………………………………………….. 11 Manpasand Beverages Ltd…………………………………………….. 18

Karur Vysya Bank Limited………………………………… 11 Marico Ltd …………………………………………………………………………....18

Kotak Mahindra Bank Ltd……………………………………. 12 Maruti Suzuki India Ltd ………………………………………………………....19

ContentsPart 1

Part 2

Page Page

Mindtree Limited………………………………………… 19 Skipper Limited………………………………………… 27

Motherson Sumi Systems Ltd ……………………………….…………………………...20 Sonata Software Ltd ……………………………….……………………………......28

Muthoot Capital Services Ltd…………………………. 20 Subros Limited………………………………………… 29

Orient Bank of Commerce…………………………… 21 Sun Pharmaceuticals Industries Ltd………………………….. 29

Parag Milk Foods Ltd……………………………………………………….21 Suven Life Sciences Limited……………………………. 30

PC Jeweller Ltd………………………………………..……. 22 Tata Consultancy Services ……………………………………………….... 30

Persistent Systems Ltd …………………………….……………………………....22 Tata Elxsi Limited…………………………………….. 31

Petronet LNG Ltd ………………………………………………………………...23 Tatasponge…………………………………………...…. 31

PNB Housing Finance Ltd………………………………………………………………..23 Tech Mahindra Ltd ………………………………………………………….... 32

PNC Infratech Ltd ……………………………………………………… 24 TV Motor Company Ltd …………………………………………...…… 32

PVR Limited……………………………………...…………. 24 Ujjivan Financial Services …………………………………………… 33

RBL Bank Ltd …………………………………………………………………………..25 Union Bank of India……………………………………….. 33

Repco Home Finance Ltd…………………………………………...…………………..25 Yes Bank Ltd …………………………………...………………………………….34

Sadbhav Engineering Ltd ……………………………………………………....26 Zensar Technologies Ltd……………………………………………….. 34

State Bank of India…………………………………...………. 26 Zydus Wellness Ltd ………………………………………………….. 35

Shriram Transport Finance Co. Ltd………………………………………….27

ContentsCompany Name Company Name

Company Infosys Ltd

INDUSTRY Software & Services

12th Jan 2018 Q3FY18 EARNING CONFERENCE CALL

Management Participants

CEO & MD

Salil S. Parekh

COO

Mr. Pravin Rao

CFO & Exe VP

Mr. Ranganath D. Mavinakere

Our analyst in the call

Niharika Ojha

[email protected]

♦Strategy update from New CEO: The newly appointed CEO is in the process of evaluating 4

business dimensions, namely new geographies, client engagements, people and service portfolio,

and plans to conclude this exercise by April to set strategic priorities for the company.

♦Deal wins: The company announced 8 large deal wins in Q3FY18 with TCV of deal wins at

US$779mn. The TCV of deal wins in 9MFY18 was US$2,167mn, down 19% yoy.

Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report

♦Tax reversal: Infosys signed agreement with US IRS in accordance with the Advance Pricing

Agreement (APA), leading to reversal of income tax provisions worth US$225mn during the

quarter. This would also lead to lower ETR going forward by 100bps. However, it would mean

cash outgo of US$233mn towards settlement of tax liabilities during the agreement covered

period of 2011 and 2021.

♦Performance-based variable payments were made during the quarter. Payouts were higher than

previous years.

♦Infosys has retained it’s near term EBIT margin range of 23-25%. Management is counting on

onsite/offshore role mix optimization as operating profit margin lever, as current Utilization

excluding training increased further to an all-time high of 84.9 which is a full 3% improvement.

Efforts towards moderation of onsite mix has led to onsite mix decreasing to 29% in 3QFY18

which is the lowest level in last 11 .

♦Vertical Performance:Growth in financial services was impacted in Q3FY18 due to higher than

normal furloughs, budget cuts in few large clients and transition underway in some large

deals.But the management expects good traction and stability in spending. Deal pipeline is

strong for FY19.MFG & Hi-Tech grew by 0.1% sequentially and declined by 0.1% in constant

currency . Telecom sector is witnessing growing interest in cyber security, artificial intelligence,

5G and cloud computing.New software (Edge, NIA, Panaya and Skava) contributed to 1.7% of

total revenue. Digital revenue constitutes 11% of total revenue.

♦Growth across geographies was dominated by Europe which grew by 5.9% sequentially and

4.7% in constant currency. This was followed by Rest of the world grew by 4.6% sequentially

and 4.0% in constant. Growth in North America grew by 0.7% sequentially and 0.7% in constant

currency and India declined by 5.9% sequentially which was lower than that of company

average.

mailto:[email protected]

Company INOX LEISURE LTD.

INDUSTRY Media



CEO

Mr. Alok Tandon

CFO

Mr. Upen Shah

Director & Group Head

Finance

Mr. Deepak Asher

Our Analyst in the Call

Niharika Ojha

[email protected]


♦New property for 3QFY18 is 3 more property with 12 screens.

♦Mgt expects to open 5 property with 22 screen with 4747 in FY18.

♦Tied up 122 property post FY18 with 622 screens and 13000 seats.

♦Content pipelines continued to be strong in 4QFY18.

♦Expect trend of capex to be 2.5 crore per screen.

♦With rise in inflation sees some normalize inflation property area.

♦Price will rise in future if the management sees quality content.

♦Realization in F& B will be improved by increase in combo prices going forward.

♦Footfall fell to 121 crore decline of 2.7%.thus Occupancy rate fell to 24% from 26% in

3QFY17.

♦Average ticket price improved from 183 to 199 in FY18 that is growth of 9.6% YOY.

♦Advertising revenue increased to 33% this quarter .Working on improvement in advertising

revenue from last few quarter is now showing results.

♦Outlook for margin: Even after inflation to maintain the current level of 4 to 5%.

♦Revenue for 3QFY18 is 325.9 crore that is 9% growth yoy.EBITDA stood at 46.5% that is 46

% growth yoy.

♦Revenue from operation includes net block grew by 6.5% to 187.9 crore, food & beverage

grew by 8.2% to 73.1 crore and advertisement grew by 333.2% to 40.3 crore.

♦Advertisement revenue now constitutes 12.4% of total revenue, thus 20% of revenue comes

from other than box office collection from advertisement and food & beverage.


Company Insecticides (India) Ltd

INDUSTRY Agrochemicals

15th Feb 2018 Q3FY18 EARNING CONFERENCE CALL


Chairman

Mr.Hari Chand Agarwal

MD

Mr.Rajesh Agarwal


Ritika Jalan

[email protected]

CompanyIRB Infrastructure Developers

Ltd.

INDUSTRY Construction & Engineering



CMD

Mr.Virendra Mhaiskar

GROUP CFO

Mr.Anil Yadav

GROUP CS

Mr. Mehul N Patel


Sandip Jabuani

[email protected]

♦For Kayakalp company has reduced a sales target from Rs15 Cr to Rs10Cr for FY18 and is

confident that it will generate revenue of Rs100Cr over three year.

♦Company will take advantage of the government’s thrust on Make in India by enhancing its

existing manufacturing facility at Dahej. In the first phase, the company will spend Rs30Cr for

expanding the present plant for forward integration. In the second phase, the company has

earmarked ~Rs100Cr for setting up Unit 2 at Dahej to augur new technical products /

intermediary capacity.

♦The company is likely to launch ~10 new products in FY19, mostly in the 9(3) category, which

will drive margin improvement by 250- 300bps over FY19-20.

♦Management pointed out that the company has been reducing generic sales, especially that of

Red Triangle products each year by Rs40Cr-50Cr, which is getting compensated by higher sales

of new generation molecules.

♦Tax rate to remain in the range of 28%-30% in FY18 & FY19.

♦Management indicated that it will further improve margins from current levels by at least

150bps in FY19 on the back of the rising share of Technical segment and a superior product

mix.

♦Management retains the guidance of top line to increase by 15% in FY19.

♦Currently, exports stand at ~Rs35Cr-40Cr.Management sees a huge opportunity in the Exports

segment and aims to double the sales by FY19.


♦IRB has submitted bids for 3 HAM projects and continue to evaluate opportunity in BOT and

ToT model.

♦Company has witnessed 9% traffic growth across the road portfolio.

♦Incentive paid on completed projects lead to higher employee cost during the quarter. Normally

Employee cost is around Rs.260-270 Cr annually.

♦Continue to expect Rs.3800 Cr of Construction revenue in FY18.

♦IRB has received appointment date on Chittorgarh Gulabpura in November and subsequently

tolling has commenced on the project. Initial toll daily collection is higher than what was

anticipated at the time of bidding.

♦Traffic is coming back to Ahmadabad Vadodra project. On NH-8 stretch daily toll collection is

50 lakh/day compared to 42 lakh/day

♦Company has submitted toll loss due on Ahmadabad Vadodra project to NHAI and expect in

favour judgment.

♦Current outstanding order book is Rs.7400 Cr with 1.8x of TTM revenue.

♦Management expects to win at least 500 Km of new projects in FY19.

♦Currently 20-25% of toll revenue is collecting through digital mode and the share of digital

mode revenue will go up.

♦Equity requirement of Rs.1400 Cr and which will invest over next 2 years.



CompanyJAMMU & KASHMIR BANK

LTD.

INDUSTRY Commercial Banks

2nd Feb 2018 Q3FY18 EARNING CONFERENCE CALL


Chairman & CEO

Mushtaq Ahmad


Anu Gupta

[email protected]


♦Sustaining the growth momentum the bank is actively managing the capital requirement for

which it has already raised tier II bonds of around 1000 crore in addition to the infusion by the

J&K govt and the addition tier I capital contributed by the revolution of banking properties.

♦The accounts which have been referred to NCLT and the couple of them the bank is having the

resolution either through ARC and other routes.

♦The Bank is able to maintain healthy margin on account of very active liability management.

♦Credit growth is expected around 20-25% in the J&k ,15-18% in the rest of India and 20% for

the overall current fiscal.

♦CASA will be maintained at 50% , credit cost less than 2% and an attempt will be taken to

bring GNPA to sub 10% and NPA ratio to sub 4%.PCR to be around 70% , NIM above 4.34%

and ROA to be at 0.4% for FY17-18.

♦Out of 6700 crore in restructured book 4794 crore is within J&k estate and 1920 crore is from

rest of India.

♦So far the restructure book is concern more than 50% of the total J&K restructured book of

around 4800 crore is in the shape of running accounts.

♦Coverage ratio will record improvement in the coming quarters in account of the additional

provision.

♦The Bank is also planning to raise additional tier I capital through the perpetual debt

instruments and equity issue through a QIP route.

Company Jindal Saw Ltd.

INDUSTRY Metals/Mining/Minerals

24th Jan 2018


CEO & Whole Time Director

Mr. Neeraj Kumar

Global Head Treasury

Mr. Vinay Gupta


Sagar Sharma

[email protected]

Company JKUMAR INFRAPROJECTS LTD.




Executive Chairman

Mr.Jagdishkumar Gupta

CFO

Mr. Arvind Gupta

MD

Mr. Kamal Gupta


Sandip Jabuani

[email protected]

Q3FY18 EARNING CONFERENCE CALL

♦Will bid for metro line 5,6 and 7. Estimated project cost will be Rs.3000 Cr each.

♦Debtors at the end of the quarters was Rs.542 Cr but it will come down by year end.

♦Till date received mobilization advances of Rs.710 Cr and pending is around Rs.100 Cr

♦EBITDA to sales ratio fell because of change in contract structure .Pre –GST regime job work

was included in top line & Raw material prices were passing through. In GST regime all the

contract for water were executed by way of job work are all now executed as normal contract.

Therefore, top line now includes raw material prices as well.

♦And, execution of more water project which are of lower margin (large dia) than oil & gas

project. Combination of high execution of water pipeline project & collapse of pre GST contract

structure led to fall in EBITDA to sales ratio.

♦Exceptional loss of Rs.30 cr was because of sale of last two ships that company had, Which

completed the exit from water way business.

♦Current order book of 1.2 million ton. No major capex on the horizon.

♦Maintain revenue guidance of Rs.2200-2300 Cr for FY19


♦Expected to produce more than million ton for FY18. Expect volume growth of 15-20% in

FY19.

♦Stainless business picking up very good, currently going through pre-qualification & up

gradation process. Sharp growth in stainless business expected and company hopes to become

among top three players in one year.

♦Growth drivers are expected to be through value addition and cost control. Expects Middle

East market to open up.

♦Company looking up for opportunities in East Africa, Egypt, Vietnam, Singapore. Export

market likely to improve in near future.

♦Raw material prices firmed up and company has been successful in passing it on with increase

in pipe prices.

♦ONGC continues to be a strong client, new order on seamless front.

♦Increase in demand from water pipeline projects.

♦Huge metro projects are coming up in all over the countries and actively bid for Mumbai,

Ahmadabad and Surat metro projects.

♦Revenue from Metro line-3 and JNPT will be Rs.250 Cr and 160 Cr respectively in Q4FY18.



Company JSW Steel Ltd.

INDUSTRY Consumer Services

31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL


Joint MD & Group CFO

Mr.Seshagiri Rao

Dy. MD

Dr.Vinod Nowal

Director, Commercial &

Marketing

Mr.Jayant Acharya

CFO

Mr.Rajeev Pai


Sagar Sharma

[email protected]


♦Out of 5 mines acquired by company 2 mines are expected to be commissioned In FY18 and

would have combined reserve of .71 million ton of iron ore , required approvals for rest 3 mines

are expected to be obtained by 30 September 2018 & would amount to 4.71 million tons of iron

ore reserved (5 mines combined).

♦Revenue acceptance of Rs.1249 crore and capex acceptance of Rs.194 crore.

♦Weighted average interest cost at 7.03%.

♦Capex guidance reduced from Rs.8000 crore in FY18 to around Rs.6000 crore.

♦Corporate Income tax rate in US has been reduced to 21% which led to reversal of deferred tax

liabilities amounting to Rs.572 crores for the US business.

♦4QFY18 expected to be better than other three quarters led by better volume and better

realization.

♦Exceptional item of Rs.264 crore provision for impairment towards Goodwill, Mining

Development and advances relating to surrender of one of its iron ore mine in Chile.

♦Steel Prices are expected to be range bound in 4Q. Long products prices are expected to be

better than flat products and sustain in 4QFY18.

♦Higher sales volume because of focus on increasing exports sales volume (up 24% QoQ) and

increase in demand for long products.

♦Coated products volume got impacted because of planned shutdown of 2 of its galvanizing

lines at Tarapur for maintenance and revamping to enhance production capacities.

♦Price of coated products took time to catch up & is expected to pick up in 4QFY18.

♦Steel prices increased by 5-6% but are still are at discount to international prices.

♦Coking coal prices are expected to be $10-$15 more per ton QoQ basis.


Company Jubilant Foodworks Ltd.

INDUSTRY Consumer Services



Chairman & Director

Mr.Shyam S. Bhartia

Co-Chairman & Director

Mr. Hari S Bhartia

CEO

Mr. Pratik Pota


Pramila Lakra

[email protected]

Company

Kalpataru Power Transmission

Ltd.




Chairman

Mr. Manish Mohnot

Dy. Managing Director & CEO

Sh. S K Tripathi


Sandip Jabuani

[email protected]

♦Dunkin loss impact in 3QFY18 was 112 bps QoQ and 218 bps YoY.

♦Subham utilization level during the quarter was 80% and it will improve going forward.

♦Revenue growth of JMC projects will be 20% plus in FY18 and 15% in FY19.

♦CAPEX for FY18 will be 70cr in total.

♦SSG in 3QFY18 is 17.8%(over -3.3% in 3QFY17).

♦Online delivery is available in 6 towns and 42 resturants.

♦Store guidance: Domino’s - 30 plus stores in FY18 & Dunkin - 5 Stores in FY18(1 store in

4QFY18- size will be 300-650 sq ft.).

♦Due to loss dunkin has cut down to 12 cities out of 23 cities.

♦GST on restaurants has reduced to 5 %.

♦Dominos Pizza – Opened 3 stores & closed 1 store (Total till date is 1127 stores across 265

cities) and Dunkin Donuts- opened 1 store & closed 9 stores (Total till date is 44 stores across

12 cities) during the quarter.

♦In 3QFY18 EBITDA is Rs. 136.9 Cr , 17.2% of sales (highest EBITDA since3QFY13).

♦PAT in 3QFY18 stood at Rs. 66 Cr, growth of 230.6% over 3QFY17( highest PAT since

3QFY14).

♦Strong focus will be on dunkin and beverages in FY18.

♦ Based on the current order book KPTL revenue will grow 15-20% in FY19.

♦Management is continuing to bullish on International T&D business and expect strong orders

from Africa, SAARC and Middle East.

♦Debt will remain at this level.

♦Expect 11% EBITDA margin for FY19.

♦Management expect pipeline business will grow 25-30% at least next couple of years.


♦Competitive Intensity is high in pipeline business but based on the strong team and enough

technical credential mgt. expect healthy order Inflow.

♦Does not expect strong traction in domestic T&D business. It will grow by 10%.

♦Management is bullish on Railway business and expect to do double revenue by next year.

Revenue from railway in 9MFY18 is Rs.350 Cr.

♦Capex for KPTL will be 100-120 Cr for FY19

♦Interest cost as % of sales will remain 2/3% for KPTL/JMC in FY19.



Company Karnataka Bank Ltd.




Non Exe. Chairman

Mr. Ananthakrishna

MD&CEO

Mr. P. Jayarama Bhat

Director

Mr. S.V. Manjunath

Chief General Manager

Mr. Mahabaleshwara Bhat


Anu Gupta

[email protected]

Company Karur Vysya Bank Limited




MD & CEO

K Venkataraman

Chairman

Mr. K P Kumar

President & COO

Mr.T Sivaramaprasad


Anu Gupta

[email protected]


♦C/I ratio will be in the range of 42-45% for FY2020.

♦In the transformation journey there will be change in the advance mix. Focus will be more on

Retail & Mid corporate.

♦The major strategy was to grow retail & commercial assets faster and a consequence reduce in

overall share of corporate book.

♦Liability book is largely retail and it gives a great opportunity to grow retail asset book.

♦Net addition to NPA amounted to Rs 638 crore during the quarter of which corporate is Rs 581

crore. All NCLT assets are now classified as NPA.

♦Last quarter 1200 crore was in the watchlist out of which 550 crore classified as NPA in

Q3FY18 and other 650 crore is to be expected to be NPA in the next two quarter.

♦NIM remains buoyant on YoY basis to 3.71% but dropped 10% sequentially on due to

substantial interest reversal on account of elevated NPA recognition.

♦Provisioning will continue to remain little bit elevated because of the need to improve PCR

from the current level.

♦During the quarter the bank got 25 crore profit from sale of investment and recognize 19 crore

worth of diminution in the value of the book.

♦The bank is holding over 500 crore outstanding security receipts.

♦Opex has increased due to branch roll out, increase in employees and also increase in wages.

Enormous focus will be given to build CASA.

♦Insurance partner of the bank right now is Birla sun life and Bajaj Allianz.

♦Out of the total income of Rs 786 crore for the quarter around 3% is related to PSLC.

♦19 branches is expected to be opened in Feb end itself.

♦25% loan growth is expected in the FY18.

♦CASA is 28.23% of total advances.

♦SMA-2 stood at 1218.24 cr.

♦RWA has been decreased due to lending loans to top rated (AAA and AA) corporate sectors.

♦Slippages during the quarter stood at 211 cr and is expected to decrease going forward.

♦Retail composition -46% of total advances.

♦Total account in NCLT-52, 12 in 1st list and 40 in 2nd.

♦Aiming ROE more than 18% for FY2020-24.

♦Margin is 3.09%. It is expected to hold down and improve further.

♦O/s exposure under : 5/25 -169.63 cr (4 A/c),S4A-346.95 cr (4 A/c),SDR -182.50 cr (4 A/c).

♦Security receipt portfolio consists of 450.50 cr.



Company Kotak Mahindra Bank Ltd.




President & Group CFO

Mr. Jaimin Bhatt

Chairman

Mr. Shankar Acharya

Joint MD

Mr. C Jayaram


Anu Gupta

[email protected]

Company KEC International Ltd.




MD & CEO

Mr.Vimal Kejriwal

CFO

Mr. Vardhan Dharkar

SR. MANAGER IR

Mr. Nitin Kalani


Sandip Jabuani

[email protected]

♦23% YoY loan growth book both on consolidated & standalone basis. 20% loan growth seems

to be sustainable.

♦SMA-2 book o/s -308 cr.

♦Significant growth in subsidiaries especially in 4 areas namely Securities business, Investment

Banking business, Asset management and life Insurance business.

♦Digital A/c launched in March 2017 has doubled the number of customer around 16 mn in

Q2FY18 and is in same trend in the current quarter.


♦Competitive intensity in railway has come down as huge orders are announced under

Bharatmala Projects. Eyeing on International markets for Railway Electrification projects.

♦Revenue growth in FY18 will be 10%. Interest as % of Sales will remain at 2.5-2.7%.

Expect strong traction from North East region for power T&D business.

♦Civil Order book will be double by next year.

♦Trading segment in SME book would be more cautious going forward.

♦Micro trend seems to be strong and Macro more challenging.

♦70% orders of L1 orders of Rs.4000 Cr are from India and out of these major orders are from

Railway. Expect 50 bps improvement in EBITDA margin in FY19.

♦High GST rate impacted Cable business. But now with reduction in GST rate, Mgt. expects

recovery.

♦Debt has increased due to delay in payment but it will come down at the year end.

♦Rs.2500 Cr of orders in SAE order book will start converting into revenue from November

2018. Expect 15-20% revenue growth in FY19.

♦Growth in order inflow from Brazil will be higher than the current growth rate.

♦Introduced facial authentication app this quarter. Online shopping below 2000 without OTP

has shown significant increase in transaction.

♦Tax profit of 50 crore during the quarter.

♦Robust and strong growth on SA growth this quarter .CASA will be on fast clip going forward.

♦Retail asset side may be problem for 2020-21 but not in 2018.

♦49% of T&D order book of India is from PGCIL.

♦Company will extend Civil business services to residential projects, affordable housing and

civil work for defense.

♦6-7% EBITDA M of cable business. Margin is lower due to heavy investment in order to built

capacity. Margin will improve as the revenue start increasing.

♦Mgt. has guided that the Railway business top line of 1500-1600 Cr by next year.

♦Expect strong order inflow from SAARC, Africa and Middle East.



Company KNR Constructions Ltd.




Chairman

B V Rama Rao

MD

K Narasimha Reddy

Ex. Director & CFO

K Jalandhar Reddy


Sandip Jabuani

[email protected]

Company KPIT Technologies Ltd.




MD & CEO

Mr. Kishor Patil

Chairman

Mr. Ravi Pandit


Niharika Ojha

[email protected]

♦Capex for 9MFY18 was Rs.177 Cr and expect to do another 30-35 Cr in Q4FY18. For FY19 it

will be Rs.130-140 Cr.

♦Debt as on 31st December 2017 was Rs.228 Cr.

♦Tax rate in will be 10%/15% in FY18/FY19.

♦30% work on Bangladesh project has completed and scope of work will increase from Rs.525

Cr to 800 Cr. KNR share will be 400 Cr.

♦KNRCON stands in L1 of couple of HAM projects in state of Karnataka but will receive only

one project worth of Rs.1150 Cr as per tender rules.

♦Strong NHAI bid pipeline worth of 1.20 lakh Cr, which will bid out in next 4-6

months.Submitted bid for Banglore Mysore road projects and waiting for bid opening. Delay in

opening of bid from NHAI end.

♦Expect to receive 1-2 projects by this month end.

♦Depreciation was higher during the quarter as KNR working in three shifts on Irrigation

projects in order to complete it in stipulated time frame. Depreciation will remain high until an

Irrigation project gets completed.

♦Management guided to do Rs.1800 Cr plus revenue in FY18 and revenue growth for FY19 will

be 15%.

♦It will creates new KPIT Technologies, a global leader in Automotive Engineering and

Mobility Solutions which will evolve from the current Engineering business of KPIT.

♦KPIT announces Q3FY18 Results with revenues at Rs. 9,127.7 Million, a YoY growth of 10%.

Growth in EBITDA was 9.6% QOQ. PAT was at Rs. 616.8 Million, a qoq growth of 3.3% and

YoY decline of 16.2%.

♦Outlook: Remain positive on the growth prospects and profitability improvement, going

forward with healthy pipeline for remainder of the year. Margin for whole year at a range of 13

to14%.

♦In terms of industry verticals, Energy & Utilities registered growth of 5% and Automotive &

Transportation vertical grew by 1% on a QoQ basis. There was a sequential decline of 6% in

manufacturing vertical.

♦KPIT promoters join with Birlasoft in launching an open offer for the minority shareholders of

KPIT.

♦KPIT and Birlasoft, will work closely to first merge Birlasoft into KPIT and later split the

combined entity of KPIT and Birlasoft into two public companies.


♦The new 'Birlasoft' will be a USD 500+ million Digital Business IT Services company that will

be created by combining the KPIT ITSS business and the current Birlasoft creating a new leader

in the mid-tier IT services space, which will also be called Birlasoft.

♦Birafost valuation is around 150mn dollar revenue for last 3 year and margin at 15% band, cash

available in balance sheet is around 3000crore.

♦Swap of 22 KPIT share with 9 Birlasoft share.



Company Lakshmi Vilas Bank Ltd.


2nd Feb 2018 Q3FY18 EARNING CONFERENCE CALL


MD & CEO

Parthasarathi Mukherjee


Sweta Padhi

[email protected]

Company Larsen & Toubro Infotech Ltd.




MD & CEO

Mr. Sanjay Jalona

CFO

Mr. Ashok Sonthalia

HEAD (INVESTOR

RELATIONS)

Mr. Nitin Mohta


Niharika Ojha

[email protected]


♦17 client added in 3QFY18 in which 4 client where added from fortune 500.

♦Vertical performance for the quarter: BFS grew 7.9% QoQ and sees overall optimistic growth

for the year. Global Banking IT spends is expected to grow in the coming years and several

banks are investing in core banking modernization programmes. Thus acquisition of Syncordis

SA is a very synergistic move by Larsen & Toubro Infotech. Manufacturing grew by 16.6%

QoQ, Management sees positive outlook for FY19. Energy & Utilities saw a steady sequential

growth of 6.6%. Healthy growth expected in FY19.♦Outlook for the year: Revenue expected to grow in mid teens for FY18. Strong pipeline for

FY19 ramp up in H2FY19. Margin to remain in current band.

♦US Tax implementation: May have slightly positive impact but more clarity is needed.

♦ETR expected to in band of 22% to 25%

♦Digital, Cloud, IOT, analytics helping to drive revenue for LTI going forward.

♦The Bank raised capital through QIP issuance at the end of calendar year 2016. Since the

amount was not sufficient to support sustained growth it was decided to raise capital of Rs 786

crore through right issuers in the 1st week of January 18.

♦On daily average basis CASA was at 20.40% and for the corresponding quarter of the previous

year was 18.93% which was in the peak of demonetization period.

♦Total revenue for the quarter amounted to Rs 818 crores against 879 crores in the Q3FY17.

Lending book has been flat for the most part of the 2nd and 3rd quarter.

♦Treasury which has contributed handsomely in the previous quarter also short pressure in

valuation. The combined impact of all these has been lower interest income from advances and

a resulted lower operating income.

♦Slippages during the quarter amounted to Rs 286 crore. The largest amount of slippages have

came from coral sector of about 90 crores and next highest is from the farmer packaging

exposure of about Rs 65 crores. There was another account in the infrastructure road account

which was 26 crore. And rest were relatively small amount.

♦Watchlist has lightened to around 1560 crores which include restructure

accounts,SDR,S4A,5/25 and only SMA-2.Sectoral breakup of watchlist-25% from Iron

& Steel and 15% from the infrastructure sector.

♦As consequence in the drop in income the cost to income ratio during the quarter was

81.23% from 49.7% reported in Q2FY18.Expects it to be 50% going forward.

Outstanding security receipt amounted to Rs 350 crore.

♦The Bank is expected to catch with the business plan by 2020.In the near future it is expected

15-20% growth.

♦Revenue for 3QFY18 at Rs 1883 crore, a growth of 7.6% QoQ and 13.0% YoY. Growth was

led by growth strong performance across verticals.

♦LTI completed the acquisition of Syncordis.



Company

Larsen & Toubro Infotech Ltd.




MD & CEO

Mr. Sanjay Jalona

CFO

Mr. Ashok Sonthalia

HEAD (INVESTOR

RELATIONS)

Mr. Nitin Mohta


Niharika Ojha

[email protected]

Company LIC Housing Finance Ltd.

INDUSTRY Diversified Financial Services



MD & CEO

Sunita Sharma

CFO & GM risk

Mr. Surinder MohanACM(MD Secretariat & IR

Manager

Mr. Sudipto Sil


Sweta Padhi

[email protected]

♦US Tax implementation: May have slightly positive impact but more clarity is needed.

♦Revenue for 3QFY18 at Rs 1883 crore, a growth of 7.6% QoQ and 13.0% YoY. Growth was

led by growth strong performance across verticals.

♦LTI completed the acquisition of Syncordis.

♦Digital, Cloud, IOT, analytics helping to drive revenue for LTI going forward.

♦17 client added in 3QFY18 in which 4 client where added from fortune 500.

♦Vertical performance for the quarter: BFS grew 7.9% QoQ and sees overall optimistic growth

for the year. Global Banking IT spends is expected to grow in the coming years and several

banks are investing in core banking modernization programmes. Thus acquisition of Syncordis

SA is a very synergistic move by Larsen & Toubro Infotech. Manufacturing grew by 16.6%

QoQ, Management sees positive outlook for FY19. Energy & Utilities saw a steady sequential

growth of 6.6%. Healthy growth expected in FY19.♦Outlook for the year: Revenue expected to grow in mid teens for FY18. Strong pipeline for

FY19 ramp up in H2FY19. Margin to remain in current band.

♦ETR expected to in band of 22% to 25%

♦Incremental Yield for Core Home loan segment is 8.35%, For Non-core portfolio is 10.5% &

for Developer segment is between 12-13%.

♦Rs 20000 Cr of NCDs @ average rate of 8.5% is going mature across FY19.

♦Management says Project loan portfolio composition will remain same going forward.


♦NPA for LAP is 0.55% & NPA for Individual segment is 0.53%.

♦Borrowing from Commercial paper is likely to go up due to short term payment obligations.

♦Incremental cost of fund was 7.38% for 3Q FY18.

♦Rs 27000 Cr individual loan got reprised in FY18.

♦Management says 3000-4000 Cr of loan asset is going to be reprised in FY19.

♦Management is targeting to open 18-20 rural offices in FY19.



Company Lupin Ltd.

INDUSTRY Pharmaceuticals



CEO

Vinita D. Gupta

CFO & President

Mr. Ramesh Swaminathan

Head-M&A, IR

Mr. Alpesh Dalal


Ritika Jalan

[email protected]

Company Mahanagar Gas Ltd

INDUSTRY Gas Utilities-Sub Ind

12th Nov 2018 Q3FY18 EARNING CONFERENCE CALL


MD

Mr. Rajeev Kumar Mathur

CFO

Mr. Sunil Ranade

SR. VICE PRESIDENT

Mr. Rajesh Wagle


Aditya Gupta

[email protected]

♦Lupin’s management expects resolution of its warning letter within 12-15 months. After

Remediation will be completed around April 2018 Company guided that it will be ready for re-

inspection.

♦The management expects US revenues to grow flat to positive QoQ from Q4FY18. Price

erosion is expected to offset by the new product launches in the coming Financial Year.


♦Net Debt-Equity ratio for the company stands at 0.40:1.As per the management it will maintain

this Ratio in the coming Fiscal Years.

♦Operating working capital increased to Rs. 57,61Cr as on December 31st, 2017 compared Rs.

57,13Cr as on September 30th, 2017. The working capital number of days stands at 134 days as

on December 31st, 2017 compared to 128 days as on September 30th, 2017.

♦The Company is expected to file 10+ ANDAs in Q4FY18. The company has enlisted several

molecules that are expected to be launched in FY19 viz. Oseltamivir phosphate (anti-viral),

Lanthanum carbonate (nephrology), Hydrocodone APAP (pain), potassium chloride (CVS),

Albuterol inhalation (respiratory) .

♦Lialda (GI) and Prevacid (GI) are likely to be launched by late FY19 post the resolution of

pending complete response letter (CRL).

♦Margins have improved due to higher realization and favorable exchange rate. Management has

refrains from giving any future guidance on margins.

♦Management has guided for 1.5 lakh new connections every year.

♦At present 1 CNG station in both Kharghar and Raigad district and total 6 stations(Khargar -3,

Raigad-3) are under construction.

♦Volume guidance for Q4FY18 is 6% YoY.

♦Capex guidance for FY19 is Rs.250-300Cr.

♦Government constant focus on clean energy and set up CGD(City gas distribution) network in

100 new cities, gives CGD companies enough opportunities to expand its network in

neighboring geographical areas.



Company Mahindra & Mahindra Ltd.

INDUSTRY Automobiles



MD

Mr. Dr Pawan Goenka

CFO

Mr. V.S.Parthsarathy


Naveen Kumar Dubey

[email protected]

CompanyMahindra & Mahindra

Financial Services Ltd.




MD

Ramesh Iyer

ED & CFO

V Ravi


Sweta Padhi

[email protected]

♦Debt to equity ratio is 0.1

♦Utilization on tractor side is around 95% and the capacity increase would happen in 1QFY19.

♦Capex guidance of Rs.7500 for next 3 years; Rs.700-800 crores investment towards electric

vehicles capacity for 5000 units per month.

♦Tax rate to be in the range of 32-33%.

♦The company is working on BS-VI and will be ready by 31st March 2020.

♦Industry growth guidance for FY19: PV- 10%, CV-10%, 3Ws-10% and Tractors 8% CAGR

going ahead.

♦Some pressure on the margins may come due to rising commodity prices.

♦Areas of concern: a) below 90% rainfall; b) Interest rate hike more than 50 bps; c) Oil prices

beyond USD 70; d) increasing commodity prices.

♦4 New launches in FY19 on UV segment.

♦11 states will be floating tenders for 9 meter electric buses.

♦Commercial vehicles will be 7-8% of total book.

♦AUM will be more than 13% in 4QFY18.

♦Up, Bihar, Eastern regions are doing well, Maharastra, Rajasthan, Gujurat, MP, is doing

average while AP,Tamil Nadu, Karnataka are not doing well.

♦Inventory is high with retailers, there are presently many schemes running therefore revenue is

being affected.

♦Maruti with nexa entered into market, opened 250 dealership .

♦Pre-owned vehicles sales has been hit, prices has increased due to GST.

♦In tractor, now it has also started finance, other tractors also apart from Mahindra and Swaraj.

♦ M&MFIN will try to get GNPA number to 10%.




Company Manpasand Beverages Ltd.

INDUSTRY Food Products



Chairman & MD

Dhirendra Singh

CFO and VP finance

Paresh Thakkar


Rajeev Anand

[email protected]

Company Marico Ltd

INDUSTRY Household & Personal

products12th Feb 2018 Q3FY18 EARNING CONFERENCE CALL


MD & CEO

Mr. Saugata Gupta

CFO

Mr.Vivek Karve


Rajeev Anand

[email protected]

♦Management expects 8-10% volume growth from Indian business and over 12% constant

currency (CC) growth from International business over coming few quarters.

♦Expects margin pressure in H1FY19 which will be negated by cost efficiency programme in the

sales and marketing spends in coming quarters.

♦Lower volume growth in Value Added Hair Oil (VAHO) is an aberration; expects double digit

growth over next few quarters.

♦Market condition is conducive for higher growth next year especially rural if government

scheme executed well.

♦CSD continues to remain under stress. Expect it to normalize in Q1FY19.

♦Green shoots visible in rural demand.

♦Company able to mitigate most of the cost inflation by its cost efficiency programme in

Q3FY18.

♦Witnessed Market share gain in 90% of the portfolio.

♦Business has stabilized in terms of wholesale and rural.

♦Management sees gradual shift in business from unorganized to organized sector in coconut oil.

♦Parle tie up: Parle will give access to its distribution network to Manpasand. The company will

appoint own distributors with the help of Parle. Margin profile will be same as in company level.

There is room of margin expansion going forwards.

♦Present cash balance is Rs 200 cr in the books.Capex for FY19 to remain at Rs 200cr.

♦Volume growth for this quarter remained 35% while value growth is 5%. Expects sales growth

in the range of 30-35% going forwards.

♦Tax rate: in the range of 14-15% in coming 2-3 years.

Plant ramp up update:

♦Baroda facility: completed

♦Varanasi Plant: will complete in April.

♦Sri city Plant: will be complete in July.

♦4th plant will come up in Bhubaneshwar , for which land acquisition underway.

♦Decline of gross margin in this quarter was mainly attributable to product mix. Gross Margin

decline is temporary. Margin will improve in full year basis.

♦Other expense was higher in the quarter due to higher A&P expense by Rs 3-4 cr.Expects

margin to be at same level going forward.

♦Currently, management envisages no freight rate hike in near term as company has 6 months

contract. There is no plan of equity dilution in near term.

♦Management sees reduction in receivable days in FY19. Recently company has added 250

distributors. Plans to increase it to 1000 by March 19.

♦Lower sugar price will help in improving margin. Company manufactures all products by their

own. No outsourcing.




Company Maruti Suzuki India Ltd




CFO

Mr. Ajay Seth

Executive Director –

Marketing & Sales

Mr. R.S. Kalsi


Naveen Kumar Dubey

[email protected]

Company Mindtree Limited.




Chairman

Subroto Bagchi

CEO & MD

Krishnakumar Natarajan

CFO

Jagannathan Chakravarthi

President - COO

Parthasarathy NS


Niharika Ojha

[email protected]

♦Total production from Gujarat Plant is 95000 units and management is targeting 150000 units

in FY18.

♦Volume growth in FY19 would be in-line with industry growth.

♦Commodity cost will be higher in Q4FY18.

♦If interest rate remains constant then the other income will remain at same level (Rs.343 crores

in Q3FY18).


♦Capex guidance of Rs.4000 crores for FY18.

♦Royalty rate 5.3% of net sales

♦Discounts for the quarter was Rs.17900

♦Gujarat plant has started its second shift and running at 20000 units per month.

♦The plant will run on its full capacity in FY19 which is 250000 units per annum.

♦Localisation at Gujarat plant is 15% and in next 3-4 years it will reach to 65%.

♦Government employee contribution is around 20%.

♦Revenue for 3QFY18 is at $214.3 million, a growth of 3.9% QOQ and 11.5% YOY Net profit

at $22 million a growth of 13.8% QOQ and 44.1% YOY.♦Realization for 3QFY18 was at 5.7%.Realisation increased because project is moving from

transitional phase to steady phase.♦Total client in 3QFY18 is 344, anew addition of 28 new client.

♦Margin increased on back of wage increase, implementation of operational efficiency, buyback

cost.♦Strong cash conversion was seen in 3QFY18.

♦Digital will continue growing, pipeline is strong.

♦Revenue growth in band of 3% to 4% range for 4QFY18.

♦ETR for FY19 in band of 24% to 26%.

♦Sustainability in growth momentum going on back of strong pipelines and deals wins.

♦5million dollar + 7 deal wins was seen in 3QFY18.

♦US tax implementation will have no major impact on Mindtree.

Outlook for Q4 FY19

♦Price will be stable in Q4FY18.

♦Maintain similar growth like Q2 & Q3 in client.


CompanyMotherson Sumi Systems Ltd.

INDUSTRY Auto Components



Chairman

Mr. . Vivek Chand Sehgal

CFO

Mr.G.N.Gauba


Naveen Kumar Dubey

[email protected]

Company Muthoot Capital Services Ltd.




Chairman

Mr. Thomas John Muthoot

MD

Mr. Thomas George Muthoot

CEO

Mr. R Manomohanan

CFO

Mr. Vinod Panicker


Sweta Padhi

[email protected]

♦Yield for FY19 will be around 14-15%.

♦On Book NIM is 14%.


♦Apart from Muthoot fin corp. distribution channels and dealership distribution channels, 2-3

more distribution channel are going to be added in 4QFY18, this channels would significantly

increase its digital reach.

♦Maintained its earlier guidance of USD18 bn revenue and RoCE of 40%.

♦Focusing on achieving 3Cx15 strategy (Despite Daimler's share increasing from 11% to 14%).

In 2020, will start looking at 3Cx10 strategy.

♦The management expects new orders to come in from the beginning of the next fiscal.

♦The Hungary plant will start production from 1QFY19.

♦Capex guidance for FY18 would be Rs. 2,000 crores and major portion would be in new plants.

Maintenance capex will be 30% of total capex. The management has further guided that this will

taper down going ahead as per the current order book and capacities.

♦European performance was negatively impacted by suppliers’ material availability which caused

extraordinary freight and labor expenses but these issues have been resolved upto an extent.

♦North America heavy duty truck market grew by 40%YoY in 3QFY18.

♦Growth rate for FY 19 will be around 40-50%.

♦ NPA for FY19 should be less than 5%.

♦Increase in loan per quarter from 50000-60000 to 1.2 lakhs.

♦9 new plants will start production from next fiscal.

♦The management has stated that most of the contracts of wiring harness segment with OEMs are

lifelong contracts.

♦Due to some political issues China has boycotted Korean brand cars.

♦PKC group divested some light vehicle business and associated assets in North America in Oct-

Dec 2016 quarter which has resulted in lower margins on comparable basis.



Company Orient Bank of Commerce.




MD & CEO

Sh. Mukesh Kumar Jain

Executive Director

Sh. Himanshu Joshi


Anu Gupta

[email protected]

Company PARAG MILK FOODS LIMITED




Chairman

Mr. Devendra Shah

CFO

Vimal Agarawal

Our Analyst in the CallOur Analyst in the Call

Rajeev Anand

[email protected]

♦The govt has announced capital infusion of Rs 3571 crore.

♦Total business of the bank has increased by 5.50% volume wise to 3.78 lakh crore.

♦Credit risk weight assets decline by 3.04% due to capital optimal growth.

♦Provision coverage ratio has been increased from 49.44% to 62.09% YoY.

♦Fresh slippages during the quarter 3304 crores.

♦The Bank has made entire applicable provision in both NCLT list I and list II.At present there is

aggregate provisioning coverage of more than 60% , in list 1-9 A/c and list II-16 A/c.

♦There is a net loss of Rs 1985.42 crores during Q3FY17-18 due to higher provisioning ,decrease

in agri profits, reversal of interest on agriculture debt waiver.

♦Recap bond amount for FY17-18 amounts to Rs 3571 crore and is likely to come in two

trenches.


♦Watchlist is around 4000 crore for next two quarters.

♦Decline in employee cost is due to change in depreciation policy which was adopted in dec 16.

♦Agri slippages amount to Rs 1267 crore due to loan waiver.

♦Interest reversal in agri amounts to Rs 251 crore and Overall interest reversal during the quarter

is Rs 400 crore.

♦O/S SMA-2 and SMA-1 amounts to 2700 crore and 9000 crore respectively as on 31st dec 17.

♦Revenue growth guidance: 13% - 15% CAGR for Next 3 Years.

♦EBITDA Margin: 10% - 11% for Next 3 Years.

♦Expect strong demand due to urban and rural demand recovery going ahead.

♦The company has strong product pipeline for the future.

♦Interest cost was higher on account of conversion of NCD worth of Rs 18 Cr to unsecured loans.

♦Gross Margin expansion was mainly led by increase of value added products in total revenue

and cost efficiency measure.

♦The company is adding 9000 retail outlets in its distribution reach every month.

♦Management expects Whey protein portfolio to reach 7% of the total sales in the medium term.

♦Working capital to remain in similar level as in the previous year.

♦A&P expenses will be in the range of previous year.



Company PC Jeweller Ltd.

INDUSTRYTextiles, Apparel & Luxury

Goods



MD

Mr. Balram Garg

CFO

Mr. Sanjeev Bhatia

Sr. Vice President (Strategy)

Mr. Nitin Jain


Pramila Lakra

[email protected]

Company Persistent Systems Ltd.




MD & CEO

Dr. Anand Deshpande

President - Digital

Mr. Sudhir Kulkarni

CFO

Mr. Sunil Sapre


Niharika Ojha

[email protected]

♦Ebitda magin was impacted by 85 bps but eas offset by higher ultisation.

♦Parx acquisition will help to expand in Europe.Parx will see improvement in next quarter and

FY 19.

♦1% QoQ dip in export margin due to currency gain/loss.

♦PAT for Q3FY18 is Rs 162.7 crores (52% growth over Q3FY17), growth is due to SSG and

New Store. SSG in 3QFY18 was 25%.

♦Company is focusing on digital catalogue on all jewellery expecting to increase in Customer

retention ratio.

♦Till date 9 stores has opened in FY18, target to reach total of 100 stores by end of March’18. (

84 stores till date). In 3QFY18 no new stores has opened.

♦GST on diamonds is reduced to 0.25%(earlier 3%). Gross margin in Diamond Jwellery is 30%.

Interest rate on Gold is 3% per annum.

♦ In 4QFY18 more than 15 stores will be opened. One store of AZBA will be opened in next

week in Taj, Mumbai (CAPEX for this store will be 25 cr).


♦Currently capacity utilization : 70% in house & 30% outsourced.

♦In Jaipur factory, complete production will start in next one and half year.

♦In 3QFY18: Domestic Gross Margin -17%, Export Gross Margin- 7.7%.

♦Business will be stable in 4QFY18. 10 franchise & 6 on store stores will be opened in

4QFY18. EBITDA margin will be stable in 4QFY18.

♦CAPEX for the factory will be 150 cr in next 3 years (50 cr per annum) and around 100 cr in

AZBA and own stores.

♦In FY19 & FY20 advertising expenses will be 2% of domestic sales(Earlier 1.2%).

♦Revenue was USD 122.53%, 3.8% QoQ and 11.4% YoY. Revenue for 9MFY18 is at 353.6 mn

dollar, 10.5% QoQ.

♦Interim dividend for the quarter is at 7 per share.

♦The management has appointed Sunil Sapre, CFO as Additional Director (Executive Director

and CFO) with immediate effect for a period of 3 years.

♦The management has indicated that Persistent will go for M&As which can help it expand

itself to unexplored geographies, verticals and technology (analytics).

♦Geography performance: India and the RoW both of which had had a muted 2Q showed an

uptick to grow 7.5% qoq and 3.8% QoQ respectively.North America was robust and grew above

company average at 5.0% QoQ.Europe showed a decline of 10.9% QoQ.

♦Investment in digital model will be fruitful in long term.

♦Digital grew by 26%, 3.9% organic and 9% QOQ with acquisition.

♦Service revenue grew at 2.2% and enterprise grew at 6.8% yoy.



Company Petronet LNG Ltd.

INDUSTRY Oil, Gas & Consumable Fuels



Chairman

Mr. K D Tripathi

Director (Finance)

Mr. R K Garg


Aditya Gupta

[email protected]

Company PNB Housing Finance Ltd.




MD

Mr. Sanjaya Gupta

CFO

Mr. Jayesh Jain

Executive Director

Mr. Shaji Varghese

Mr. Ajay Gupta


Sweta Padhi

[email protected]

♦Mundra terminal is expected to start by the end of FY18.

♦Volume at Dahej terminal is higher on account of new capacities.

♦Volume at Kochi terminal has remained low due to lower off take one customer in Nov 2017,

which is expected to be resumed in the month of April 2018. Kochi refinery does not have too

many consumers.

♦BPCL Kochi refinery has now stabilized and current trend will continue in accordance with the

BPCL off taking volumes.

♦Management does not see any impact of oil price surge on the volumes going ahead.

♦5% hike in realization is taken in Jan 2018.


♦Dahej capacity expansion to 17.5MMT is on track and is expected to come on stream in the

month of June-July 2018.

♦Company is constructing one additional storage tank at Dahej terminal at the cost of Rs.500-

600 Cr. over next 3 years. This tank will not add any new capacity but will facilitate capacities at

Dahej.

♦Pipeline work is on track in different spreads and work on 140 km is done out of 350 Kms and

is expected to come on stream in Q4 FY19.

♦12-15 bps relief of interest rate is to come in 4Q, because of conversion of short term

borrowings into long term borrowings.

♦1300 Cr account have requested for subsidy under PMAY.

♦Tamil Nadu, West Bengal and Rajasthan are proactive in RERA movement.

♦Management believes NIM will be in the range of 395-400 bps.

♦ Difference in Yield between loan above 30 lakhs & loan below 30 lakhs will be around 15-20

bps.

♦The share of NPA, individual housing segment is at 0.49%, Non housing segment is at 0.34%,

individual LAP is 0.59%.

♦Non-salaried customer segment is about 40% of the portfolio.

♦Management believes deposits will grow strong in next 2 quarters.

♦Incremental spread will be in the range of 195-210 bps.

♦Portfolio Mix-Individual home loan is to be around 70%-72%,(including construction

finance),loan against property and non housing portfolio will be around 18-20%, and Lease

Rental discounting and CTL will be rest.

♦Management says Deposits is at 25%, NCD is at 45%, CP to remain 15-18% while Bank

borrowings will go up, ECB will come down, NHB is going to remain same.



Company PNC Infratech Ltd




Chairman & MD

Mr.Pradeep Kumar Jain

CFO

Mr. D K Agarwal

AVP

Mr. D.K. Maheshwari


Sandip Jabuani

[email protected]

Company PVR Limited

INDUSTRY Media



CEO

Mr. Gautam Dutta

Group CFO

Nitin Sood


Niharika Ojha

[email protected]


♦PNCINFRA received bonus of Rs.59 Cr for early completion of Agra-Firozabad projects in

January and will booked in revenue in Q4FY18.

♦Land availability on Chakeri Allahabad is around 60% and will receive appointment date in

time.

♦Till date received mobilasation advance of Rs.88 Cr from Dusa Lalsot and expect to receive

from Chitradurg HAM project in Q4FY18.

♦Working capital and debtors days may increase in Q4FY18 but normalize in FY19.

♦Employee cost during the quarter was higher on account of salary and wage hike have given

along with commission to employee for early completing Agra Firozabad projects.

♦Overall revenue grew Rs 560 up 3% in 3QFY18. Big challenge was faced due to movement of

padmavat saw a 3 week of content loss.

♦Healthy growth was in ATP was 6% QoQ , F& B GREW 12% , Advertisement grew 11%.

♦3QFY18 saw 36 new screen and 2 property. 31 more screen to be ready to work in next quarter.

♦60 to 70 + screen to be added FY19.

♦Outlook for advertisement: 20% growth in advertisement for FY18, so management expect to

be on Track to get 290 to 300 Crore revenue from advertisement.

♦Consolidated debt of PVR is 820 crore.

♦2.70 to 2.75 Crore capex in FY19. Capex expected to be lower by 200 crore in next 24 to 36

months.

♦2018 looks more promising with regard of content pipeline.

♦Aspiration of 20% operating margin.

♦Rs.43 Cr was received from Narela Industrial projects.

♦Appointment date of Jhansi package-l&ll in March and February respectively.

♦Appointment date on Bhojpur Buxar will be by March end.

♦Cut down revenue growth guidance for FY18 to 10% from 15-20% and increased for FY19

from 35% to 40-50%.

♦Maintain EBITDA margin at level of 13.5%.

♦10% growths in media will remain same for FY19.

♦Post renovation in oberoi led to 15% up in ATP and 20% up in F&B.

♦Other expenses declined due to expenses claimed under input credit mechanism in GST.

♦Stake in US is a strategic investment by management.

♦20% of screen to be premium in 2years.



Company RBL Bank Ltd


23rd Jan 2018 Q3FY18 EARNING CONFERENCE CALL


MD & CEO

Vishwavir Ahuja


Anu Gupta

[email protected]

Company Repco Home Finance Ltd.




MD

R Varadarajan

Executive Director

Mr.V Raghu

CFO

T Karunakaran

Chief General Manager, Credit

K Ashok


Sweta Padhi

[email protected]

♦Incremental Borrowings is 7.81%

♦Incremental Ticket Size, LAP – 19 LAKHS, Home Loans 15.6, Average ticket size -16 lakhs.

♦For FY20, 20% growth is expected.

♦GNPA to lower around 2% in FY19.

♦1800 Cr disbursement guidance for H2FY18.

♦60% book is in Tamil Nadu, it is facing sand mining issue.

♦Company is diversifying to Maharashtra & Gujarat.

♦Spread to remain 12-13 for next 3 quarter.

♦Out of Total Disbursement of 657 Cr, 313 are salaried and 344 are Non-salaried.

Please refer to the Disclaimers at the end of this ReportNarnolia Securities Ltd

♦Growth guidance for FY18 to achieve 10000 Cr AUM.

♦Mgt is seeing growth in the Commercial Banking business with strong customer acquisition

driving both NII and fee income growth.

♦Macro slowdown in Indian economy seems to have bottomed out in the last quarter.

♦Some early signs of pickup in Business expansion, Credit demand and industry production are

visible now.

♦GDP is expected to return at above 7% growth in the next fiscal.

♦Demand for credit is expected to go up further as the economy picks up.

♦Wholesale & Non-wholesale segment continues to see strong traction of 35% on average YoY

basis. Under wholesale corporate & Institution business NPA has increased slightly due to

addition of 1 A/c.

♦Contribution of credit cards grew 23% of Retail asset portfolio. The Card business continues to

see strong growth. Addition of 1.7 lakh incremental cards in the Q2FY18.Taking card portfolio

to over 6.2 lakh cards.

♦Cost of saving has reduced to 6.4%.CASA is expected to continue improvement. NIM to be

maintained at 3.9% in Q4FY18.

♦DBNFI business which include Micro, SME and financial business the GNPA will remain

within 5.5% for the next 2 quarter. And till next fiscal it will be around 1%.Disbursement of

2960 crore in this segment.

♦Agri portfolio is under 2000 Cr .NPA in this sector for Q3FY18 is around 2.89%. In order to

control NPA Mgt is cautious to grow this segment.

♦One account in the CIB segment which was under SDR has classified as NPA this quarter. This

represents 0.14% of total advances. Mgt is confident that this account will move out of NPA in

Q4FY18.

♦Restructured asset are at 0.18% as compared to 4.1%. No S4A and 5/25 in this quarter. There

was also no sale to ARC.



Company Sadbhav Engineering Ltd.




Ex. Director & CFO

Nitin Patel


Sandip Jabuani

[email protected]

Company State Bank of India




Chairman

Mr. Rajnish Kumar

MD and CFO

Ms. Anshula Kant.

MD, Corporate Global

Banking and Stressed

Asset Resolution Group

Mr. B. Sriram


Deepak Kumar

[email protected]

♦Out of total slippages of Rs 26,700 Cr, corporate slippages were Rs 21800 Cr. Out of this Rs

19,394 crores has slipped from the stressed pool. So, about Rs 10,000 crores has come from

standard restructured in this, and another Rs 10,000 crores has come from S4A and SDR.

♦Hardening of yields impacted the profit by way of mark-to-market by Rs 3,400 crore in

provision line and in income front about Rs2,000 Cr.

♦Planning to raise Rs 20000 Cr of capital from investors.

♦Total standard stressed assets pool now stands at Rs 50,000 Cr.

♦Interest reversal in nine month period has been Rs 6,370 crore. And quarter three, it has been to

the extent of INR 1,910 crore.

♦Targeting ROA of 0.6% in FY19.


♦Tax rate in FY19 will be 10-12% and full tax rate in FY20.

♦Debt has reduced by Rs.300 Cr in 9MFY18 and it will further reduce by Rs.150-200 Cr in

FY18. Revenue will be Rs.4300 Cr in FY19 with EBITDA Margin of 11.5%.

♦Lower revenue guidance by Rs.100 Cr due to delay in appointment date in Rampur kathgoda

packagell and Waranga to Mahagaon projects. Maintain order inflow of Rs.7000 Cr. ♦Order

Inflow in FY19 will be Rs.8000 Cr

♦Applied CoD for Yamuna Nagar Package-ll and Eastern Pherphiral Package-ll.

♦56 EPC projects worth of Rs. 35000 Cr and 89 HAM projects worth Rs.90000 Cr are in bid

pipeline and will tender before 31st March 2018.MSRCD is preparing tenders worth Rs.21000-

22000 Cr.

♦Expect Rs.150 Cr cash Inflow by February end.

♦Capex will be lower going forward as company will purchase only critical machinery and

outsource all the non critical machinery. Despite the outsourcing management will maintain

EBITDA at 11.5%.

♦Outstanding loan given to SIPL is Rs.445 Cr.

♦Competitive Intensity is very high in EPC and HAM projects but expect to receive Rs.8000 Cr

in FY19 on the conservative approach.

♦Capex Requirement in FY18 is 60 Cr and same will be for FY19.

♦Won one arbitration award of Rs.104 Cr, out of this Rs.72 Cr will come to Sadbhav Eng.

Currently, 3 another claim of Rs.600 Cr are under process and expect to receive in FY19.

♦SADBHAV try to maintain leverage around 0.5x going ahead.

♦There was divergence of Rs 23000 Cr for FY17. Out of these Rs 2800 Cr was recognized as

NPA in 1Q and rest all was recognized in Q3. Large chunk of slippages are coming from power

sector and going forward in next 2 quarters also power sector will be major contributor.

♦Loan book growth guidance of 10% in FY19.



CompanyShriram Transport Finance Co.

Ltd.




MD & CEO

Mr. Umesh Revankar

CFO & Ex. Director

Mr. Parag Sharma


Deepak Kumar

[email protected]

Company Skipper Limited.




CFO

Mr.Sanjay AgarwalDirector

Mr.Sharan Bansal

Director

Mr.Devesh Bansal

IR

Mr.Aditya Dujari


Sagar Sharma

[email protected]


♦Sagar Mala and Bharat Mala projects of Rs 7-8 Lakh Crore will create significant demand

over 4-5 years going forward.

♦Company is selling its majority of stake in Shriram Automall India Ltd to CarTtrade India for

Rs 156 Cr. Post tax gain on this deal will be Rs 120 Cr. Management expects this deal to be

completed during 4QFY18.

♦Will transit to 90 dpd NPA recognition in 4Q FY18 which will have impact of 100-120 bps in

GNPA.

♦Credit cost for FY19 will be at 250-260 bps.

♦Management has revised its guidance for PVC business growth from 20% to 15% for FY18

and expects aggressive growth in FY19.

♦EBITDA Margins are expected to be range bound between 13-14% going forward.

♦Capacity addition of about 15% in FY18 from current 2.3 lakh ton.

♦Export orders about 15% of total order book.

♦Company got clearance certificate from Canadian Welding Bureau, which will lead to entry

into high potential North American power transmission market.

♦Company developing Railway and solar structures to include in its product portfolio.

♦Company continuously working to get orders from Railway electrification projects with

strategic alliance with local player to build EPC capability in this sector.

♦PVC business faced challenges because of GST implication but management expects to get

back to previous target of 35-40% growth in FY19.

♦AUM growth was higher because of higher rural demand from agri output. Infra activity has

also seen good activity after monsoon. E-commerce industry has also seen good demand in

LCV segment.

♦CRISIL revised rating for long term borrowings from A+ to AA- and short term borrowings

reaffirmed at A1+.

♦Secured orders of Rs.525 crore for engineering products from Power grid corporation,

Transmission corporation of Telangana (Rs.150 crore) , Tamil Nadu(Rs.9 crore) , Reliance

jio(Rs.86 crore).

♦Order book of Rs.2530 crore at end of December 2017.

♦Management expect the good growth going forward specially in LCV segment due to lower

base and HCV segment will be dependent on movement in infrastructure activity. Management

also thinks that steel and cement industry will also witness good transportation movement going

ahead.

♦New vehicle demand has been seen in higher 31 tonnage vehicle which is mainly led strict

control in overloading.



Company SONATA SOFTWARE LTD.

INDUSTRY IT SOFTWARE AND SERVICES



Chairman & MD

Mr. Srikar Reddy

HEAD (FINANCE &

ACCOUNTS

Mr. R. Sathyanarayana

CFO

Mr. Prasanna Oke

Our analyst

Niharika Ojha

[email protected]


♦The management continue to add senior additions to the management team, Vikas joined last

quarter, after that the company had not appoited any same seniority level. Continue to

strengthen management team. The management strengthened in the last quarter also by not

asking but another three or four people have come on board in the last quarter.

♦Revenues in rupee terms Rs. 241 crores, sequential growth of 3% and year-on-year growth of

17%, the gap between the INR growth and dollar growth on account of the dollar depreciating or

rupee appreciating.

♦Added four new customers during the quarter, two from the US, one from Europe and one from

Asia to augment roughly 12-13 customers we added during the first half of the year.

♦Margin improvement has been both on better utilization and better realization.

♦The company continue to show growth in IBIS, they probably grew by about 2% to 3%,

however the growth was not as high because this was largely US driven. And so they were

impacted by the furloughs and traditional weakness which happens in Q3 in the US. However,

having said that, IBIS continues to be growing and EBITDA roughly in the range of about 14% -

15%.

♦FIRST IP on the Microsoft dynamic platform which is Brick & Click and ASCS, Advanced

Distribution Solutions apart from IBIS. The second is the mobility platform Halosys, and third is

Rezopia, the travel platform. So we have three other called Kartopia on ecommerce, RAPID

which is our DevOps platform, there we have started to see traction.


Company Subros Limited.

INDUSTRY Auto Components



MD

Shradha SuriVP Corporate Planning &

Marketing

Pramod Kumar Duggal

Senior VP Finance

Manoj Sethi


Naveen Kumar Dubey

[email protected]

CompanySun Pharmaceuticals

Industries Ltd.




MD

Mr. Dilip Shanghvi

CEO

Mr. Abhay Gandhi

IR & Corp Comm

Mr. Nimish Desai

Our Analyst

Ritika Jalan

[email protected]

♦Debt repayment of Rs.22-25 crores in FY18 and Rs.60 crores in FY19.

♦Capex in the range of Rs.60-65 crores.

♦Tax rate to be 30%.

♦Utilization level is 80-85%.

♦40% market share in Passenger Car segment.

♦Passenger Car and Non Passenger Car mix is 90:10.

♦ECM revenues around Rs.200 crores in FY18 and Rs.240-250 crores in FY19.

♦Railways business revenue is Rs.17 crore in FY18 and Rs.26 crores in FY19.

♦Currently import content is 40% of sales; management targets to bring it to 20-25% in next 2-3

years time.


♦Management has guided for Q4FY18 revenue to remain in the same range as Q3.It expects

revenue guidance of high single digit in FY18 to be missed marginally.

♦Tildrakuzumab PDUFA date is in end-March 2018.

♦For 2HYFY18, management continue to expect EBITDA margin in the 20% to 22% range for

the first half of this year.

♦R&D investments are likely to be slightly lower than original guidance of 9% to 10%.This

R&D expenditure includes investments on account of funding the clinical development of the

global specialty pipeline.

♦Pricing environment in the US market to sustain.

♦Expect BLA approval for Tildrakizumab in FY19E, PDUFA date is in Mar-18.



Company Suven Life Sciences Limited.




Chairman & CEO

Mr.Venkat Jasti

VP Corporate Affairs

Venkatraman Sunder


Ritika Jalan

[email protected]

Company Tata consultancy Services Ltd




CEO & MD

Mr.N Chandrasekaran

CFO

Mr.Rajesh Gopinathan


Niharika Ojha

[email protected]

♦Management expect topline growth would be around 11%-14% on back of strong growth in

CRAMS business(Rs 600Cr-650Cr) and the bottom line should be up by 10%-15% in FY18.

♦Suven has executed 800+ NCE-based CRAMS projects and is working on 116 projects (75 in

Phase I, 34 in Phase II and three in Phase III) by end of 3QFY18.

♦SUVN-502 is in phase 2A clinical trials in the US. The company has enrolled 370 patients (of

537). Management expects clinical trials to be completed by mid-CY18 and the results to come

by end-CY18.

♦Management has given guidance to file about 10 ANDAs by 2020.

♦Management has guided maintenance capex of Rs100Cr in FY18 & FY19.The Company has

capex plans of Rs120Cr over two years for additional block.


♦Consolidated R&D expenses for FY18 & FY20 after taking SUVN-502 will be around $19-

$20 million.

♦SUVN-911 will be entering Phase 1 clinical trial around May 2018.SUVN-G3031 Phase 2

clinical trial to start somewhere in this calendar year. SUVN-D4010 will be ready for Phase2 BY

2019.

♦The management announced a dividend per share of Rs 7 in 2QFY18.

♦A strong performance was seen in the December quarter, marked by the signing of industry-

defining deals, robust client metrics and broad-based demand across industry verticals.

♦Client addition: Strong client additions was seen across all revenue bands in 3QFY18. During

the quarter, 3 clients were added in $50M+ band, 7 in $20M+, 9 in $10M+ and 15 in the $5M+

band. In total, strong addition was seen in each of the $50M+, $20M+, $10M+ and the $5M+

bands.♦Deal wins: Continuing investments by clients in Digital initiatives resulted in over 150+ wins

and strong growth across all service practices.

♦Verticals:Growth was led by Energy & Utilities (8.5% QOQ), Travel & Hospitality (2.9%

QOQ) and Life Sciences & Healthcare (2.5% QOQ).Retail & CPG vertical saw Turnaround

which a growth of (3% YOY) and (6.4% QOQ in CC). Robust demand pick up in Retail is

expected in coming quarters.Retail & CPG vertical saw Turnaround which a growth of (3%

YOY) and (6.4% QOQ in CC). Robust demand pick up in Retail is expected in coming quarters.

♦Georgraphy wise:From a geography perspective, growth was once again led by a strong 2.6%

QoQ growth in Continental Europe and 5% growth in Latin America. North America continue to

grow below company average primarily due to the softness in BFSI.



COMPANY

Tata Elxsi Limited


22nd Jan 2018 Q3FY18 EARNING CONFERENCE CALL


MD&CEO

Mr. Madhukar Dev

EVP & Head – Embedded

Product Design

Mr. Manoj Raghavan

SVP & Head – Marketing

Mr. Nitin Pai


Niharika Ojha

[email protected]

COMPANY

Tata Sponge Iron Ltd




Chairman

Mr. A M Misra

MD

Mr. D P Deshpande


Sagar Sharma

[email protected]

♦ Iron ore and Coal prices have increased but increase in coal prices have been more as

compared to iron ore. Further increase in iron ore price would impact profitability as it would be

tuff to pass on increment in prices from here on.

♦Finance cost included onetime payment to income tax authority.

♦Details on capex for steel plant are being worked out and are at advance stage.

♦It would take 2.5 years to set up steel plant after getting environment clearance.


♦TATAELXSI overall revenue grew 12.8% YOY to Rs 346 crore in 3QFY18 vs Rs 309 crore in

3QFY17. Revenue growth was led by software development services business (94.8% of

revenue) 14% YoY. Automotive segment led the growth for software development services.

♦EBITDA came in at Rs 93 crore up 11.3% QOQ and 31.1% YOY.

♦Employee cost decline sequentially due to replacement cost lower than attrition cost. Attrition

rate for 3QFY18 is 12%.

♦Industrial design saw a soft quarter in 3QFY18 to improve in next two quarters on the back of

good pipeline.

♦VERTCALS:In EPD segment total revenue composition was 55% to 60% from

automotive,30% from broadcast and rest came from communication segment.Good

opportunities to continue from OEMs and tier 1 in automotive, from communication segment lot

of traction with telecom operator space will come in next few quarters.

♦Revenue contribution of client base: Top 2 clients contribute 20% to 35%, top 5 contributes

45% and top 10 contributes 60% of overall revenue. Management working to improve more top

5 & top 10 accounts.

♦The company aspires to achieve 20% growth in top line.

♦Headcount for 3QFY18 was 5400, a net increase of 300 employees. Mgt continues to hire more

employees.

♦Utilization for 3QFY18 is currently at 82% and management does not expect to grow higher.

150 active customer in 3QFY18.

♦Management is confident of achieving target of 410 KT of sponge iron production in FY18.

♦Increase in sponge iron price because of increasing raw material cost. Sponge iron prices are

expected to remain around Rs.20000 per ton for next 6 months.


COMPANY Tech Mahindra Ltd




CFO

Mr. Milind Kulkarni

Vice Chairman

Mr. Vineet Nayyar


Niharika Ojha

[email protected]

Company TVS Motor Company Ltd.




CEO

Mr K N Radhakrishnan

Group CFO

Mr K Gopala Desikan


Naveen Kumar Dubey

[email protected]

♦Revenue was Rs 7,776 crore versus Rs 7,606 crore in Q2FY18 up 2.2% QOQ and 2.9% YOY.

♦EBITDA margin was 16.3% versus 14.5% in Q2FY18, improvement of 180 basis points on the

top of improvement of 180 basis points. The margins tailwind came from improved utilization

from 81% to 83%, improved business mix and improvement in the profitability of portfolio

company.

♦Sold off Pakistan operations of LCC resulting in a small gain of 1.4 million which is a part of

the miscellaneous income.

♦BPS business saw another good quarter, QoQ grew about 20% and year on year about 24%.

This has come on the back of, strong execution on the strategy of driving transformation,

leveraging technology on the front office side, that is on the digital customer experience front, as

well as using platforms, automation, analytics and artificial intelligence on the back office and

mid office side as well.

♦11 deals wins and TCV 300 million in this quarter.


♦Incredible pace at which innovation, disruption, and adoption of cutting-edge technologies

challenge for IT sector.

♦Networks of the Future, Internet of Things, Devops, and customer experience which will be

Growth driver for the company going forward.

♦Continued investing in areas pertaining to future of technology like IoT, AI, ML, VR,

blockchain, cyber security, Big Data analytics and robotics.

♦Vertical performance: Manufacturing, BFSI, TME and Healthcare had grown at about 10% year-

on-year. Won large deals in healthcare insurance space this quarter and saw BFSI customers

added to $50 million customer account. Communication business decline on cautious decision to

let go off some of our low-yielding business during the last year with a view to improve the

business mix of the communication portfolio.♦Wage increase will impact in 1QFY19. FY 2019 tax rate expected at range of 24% .

♦The company expects growth momentum to continue in FY19 and it will grow better than the

industry.

♦Double digit margin guidance for 4QFY18 & FY19

♦Other expenses to remain high as the company will continue to invest in marketing and sales

promotion.

♦The company is fully focused on bottom line improvement.

♦Apache RTR 310 received good response and the company expects volume of 10000 units in

first 12 months.

♦Currently waiting period for Apache RTR 310 is 4-4.5 months.

♦Capex guidance of Rs.500-600 crores for FY18 and Rs.500 crores for FY19.

♦The company has taken any new loan in the current fiscal.

♦ There will be a new product launch next week and another in 4QFY18.



Company Ujjivan Financial Serices Ltd.




MD & CEO

Mr. Samit Ghosh

Non Executive Director

Venkatesh Natarajan

Ind. Non-Executive Director

Sunil Patel


Sweta Padhi

[email protected]

Company Union Bank of India


3rd Feb 2018 Q3FY18 EARNING CONFERENCE CALL


MD & CEO

Shri Rajkiran Rai G.


Anu Gupta

[email protected] ♦67% of the loan book is repriced at MCLR. NIM guidance for FY18-2.10%.

♦Sale to ARC of 8000 crore. NNPA is expected to come down below 6%.

♦Few recovery not considering NCLT for this quarter should be more than 1000 crore for the

bank.

♦NCLT resolution is not expected for Q4FY18.In Q1 and Q2 FY19 substantial recovery will be

seen.

♦Credit cost for FY18 to be around 4%. It is assumed to be 2% due to the ageing provision

happening in few of the accounts.

♦Between SDR, S4A and 5/25 there is a overlap of 2500 crore and in SMA-2 around 6000

crore of overlap.

♦Standard restructure amounts to 3700 crore out of which 1 infrastructure A/c of 431 crore were

added during the quarter .In next 6-9 month either it will be upgraded or slip into NPA.


♦NIM to further reduce by 50 bps in FY18.

♦Individual Loan NPL is at 7.5% while it was at .1% in 3QFY17.

♦2255 Cr legacy borrowing have been paid, while 950 Cr is prepaid.

♦Brought down investment book during sept-dec17 by 5000 crore because of G-sec yield issues.

♦Surplus SLR to the extent of 16000 crore is adequate for the liquidity requirement.

♦55% of Retail book is housing and 15% is LAAP. Cross sell of the product is done along with

the sell of retail loan therefore income will be balanced.

♦4% of the book will be under stress in SDR, S4A and some in SMA-2.

♦Number of slippages is expected to reduce in the next year.

♦SLR-4-5% in terms of NDTL. SMA-2 amounted to Rs 13518 crore.

♦Strong growth in Retail & SME due to cross selling to existing customer.

♦Wage revision provision has not been done in this quarter. It is assumed that it will be 75 crore

per quarter from Q4FY18.

♦Collection efficiency is at 99.7%.

♦Ujjivan to roll out 67 branches in 4th quarter, to total 388 branches in FY18.

♦Deposit is 2437 CR, with CD at 1379 Cr.

♦Average cost of borrowing is at 9.3%.

♦650 Cr Opex guidance to increase by 20-25%.

♦20%-25% growth guidance for FY19.

♦FY19 all branches will be converted to SFB.

♦Credit Cost for FY19 to be 1% or below 1%.



Company Yes Bank Ltd.




MD & CEO

MR. Rana Kapoor

SENIOR GROUP

PRESIDENT & CFO

Rajat Moga


Deepak Kumar

[email protected]

Company Zensar Technologies Ltd.




MD & CEO

Mr. Sandeep Kishore

CFO

Manoj Jaiswal


Niharika Ojha

[email protected]

♦The management is seeing strong pipeline and deal wins in the CX, UX, the digital agency and

the CMO, CDO space in the European market segment.

♦Vertical: Financial services grew 6%; manufacturing grew 5%; and retail above 1.8% on

constant currency.


♦Credit growth in the system was strong. Loan growth for Yes bank is coming from large new

corporate client. Adequate level of capital has helped Yes Bank to grow.

♦Treasury income was lower by 100 Cr due to sudden spike in bond yield.

♦NIM declined by 20 bps sequentially due to two reasons-

1) 10 bps impacted by capital bond borrowing of Rs 9400 Cr at 8.5% cost which is higher than

overall 6% cost of fund for Yes Bank.

2) 10 bps was impacted due to increase in Security Receipts Book.

♦Management reiterated NIM guidance of 4% well before FY20 on the back of following lever:

a) CASA growth target of 40% by FY19.

b) Reduction in saving deposits rate which is at 6% currently. It will cost around 4% by FY20.

c) Growing PSL organically will help in cost reduction.

d) Change in assets mix towards retail book.

♦Cost to income ratio will decline to 37% in few years horizon

♦Digital revenue accounted for just under 39%- 38.8% of the overall revenue and grew 9%

sequentially and 35% year-on-year.

♦GEORGRAPHY: US delivered a solid growth of 5.3% on constant currency sequentially.

Africa continued its great performance and grew 3% sequentially on constant currency. Europe

predominantly on account of Foolproof revenue actually saw a marginal decline due to the

furloughs and seasonality of the business.

♦The effective tax rate for the quarter is at 33%. This is primarily due to the increase in profits in

US business and Q2 included a one-time gain in India taxes which is not recurring.

♦Guided to achieve CASA 40% by September 2018. Targeting PCR of 60% in June qtr 2018.

Significant part of NPA will be recovered within two quarters.

♦Management highlighted that 40-50% of fee income will be amortized under IFRS accounting.

♦Bank has increased MCLR rates by 5 bps effect from January. Major of the book is on floating

rate.

♦Revenue for the quarter is Rs 794 crore which reflects a sequential growth of 4.1 QOQ. The

gross margin for the quarter improved by 134 basis points over the previous quarter despite of

lesser working days.Net profit saw a decline due to exchange impact and higher taxes.

♦Keystone, the company that was acquired in March 2017 continues to perform well. Keystone

grew over 12% QOQ. Foolproof revenue saw a decline this quarter due to furloughs.



Company Zydus Wellness Ltd




COO

Mr. Tarun Arora

Director

Ganesh Nayak

VP corporate finance, Cadila

Health care.

Vishal Gor


Rajeev Anand

[email protected]


♦Sugar substitute category grew by 13.2% YoY in this quarter. Sugar free’s market share

remained 94.4% in Q3FY18.

♦Scrub category grew by 9.9%YoY.

♦Peel off category grew by 17.9% YoY while Everyuth peel off mask’s market share remained

86.5% in Q3FY18.

♦Gross Margin deteriorated QoQ due to rise in custom duty on Palm Oil twice, once in August

and second in November 17.

♦The company will speed up new launches going forward.

♦GST rate was cut by government in November. The company had immediately passed it to the

consumers.

♦Company’s distribution reach at business level is 8.2-8.3 Lakhs outlets.

♦A&P expenses will remain in the range of 18-20%annually.

♦Nutralite: 70% of its business is institutional. Continue to witness volume led growth on the

back of enhance distribution and new launches.

♦Sugar free green has market share of 1.6% as per Neilson. Company sees better traction from it

going forward.

♦The company is launching Mayonnaise in this quarter. Have enough new launches for next 3-4

quarters.


Narnolia Securities Ltd201 | 2nd Floor | Marble Arch Building | 236B-AJC Bose Road |

Kolkata-700 020 , Ph : 033-40501500

email: [email protected], website

: www.narnolia.com

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Summary of management concall attended by our Analysts ... · Company Name Page Company Name Page Aegis Logistics Limited …………………………….…..3 4 Deep Industries